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VAR TO SAAS MOVE SPEEDING UP?

David DierkeThe signings are starting to trickle in. Last week’s article noted Arxis Technology signing to carry SAP’s Business By Design. During the last week it was Shafer Solutions, another Sage VAR that has agreed to carry Intacct’s online product. With former Sager Taylor Macdonald doing the Intacct recruiting, I’m sure we’ll see more Sage recruits just as another article in this edition notes, Acumatica, which has some former Dynamics people aboard, is doing a good job of enlisting from that VAR gene pool.
AccountMate CEO David Dierke, who said about six of his company’s dealers have signed with Acumatica, noted the training is free. Dierke said it will be an interesting question about how they make money, since AccountMate dealers typically perform extensive customization for customers and command very good fees for doing so. However, Dierke believes that SaaS reselling and consulting isn’t simply going to involve shoving the product onto the customer locations—well, like a sea turtle laying its eggs on the beach and then pushing off forever—there will be after sale services. “I think it will be somewhere in between,” he said. Dierke also thinks traditional VARs probably need separate entities to market the SaaS products because of the different cost structure and revenue pattern. What we need is a good body count on these campaigns since NetSuite also has recruited dealers and during this month’s earnings conference call, CEO Zach Nelson mentioned spending time with 20 new resellers recently.
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